Immofinanz/East say capital structures sound enough, despite massive `08/09 losses

Vienna listed property firms Immofinanz and Immoeast, battling for a year to stave off the biggest collapse in European property and tied through a cross-equity holding, finally reported full-year results in summer, revealing massive below-the-line losses but saying underlying capital structures are sound enough to continue in business. Both have year-ends at end-April. Immofinanz, which owns 55% of Immoeast equity, reported a depreciation on the real estate portfolio of e1.3bn plus other write-offs of e881m. The net loss for the year came in at a mountainous e3.4bn. Immoeast showed a portfolio depreciation of e913m and other write-downs of e823m. Net loss was e2.4bn, against a profit of e167m in 2007/8. Immofinanz had equity of e4.6bn at year end and a balance sheet equity ratio of 39.0%. Immoeast, which bundles most combined activities in CEE, has equity of e5.4bn and a ratio of 50.5%.